Pakistan Govt Cuts Mobile Phone Duties by Up to 20% for FY2026-27

The government has reduced duties on imported mobile phones for FY2026-27, cutting both regulatory duty and additional customs duty across multiple smartphone categories as part of a broader tariff rationalization drive.
According to the Ministry of Commerce, the regulatory duty on smartphones priced above $500 has been reduced by 20%, falling from Rs 22,000 to Rs 17,600 per handset. This change reduces the duty by Rs 4,400Â on each high-end phone.
The Additional Customs Duty (ACD) on the listed smartphone and cellular-phone categories has also been reduced from 6% to 4%.
Revised Regulatory Duty on Imported Smartphones
| Smartphone Value | Previous RD | New RD | Reduction |
|---|---|---|---|
| Up to $30 | Rs 300 | Rs 240 | 20% |
| $30-$100 | Rs 3,000 | Rs 2,400 | 20% |
| $100-$200 | Rs 7,500 | Rs 6,000 | 20% |
| $200-$350 | Rs 11,000 | Rs 8,800 | 20% |
| $350-$500 | Rs 15,000 | Rs 12,000 | 20% |
| Above $500 | Rs 22,000 | Rs 17,600 | 20% |
The revised structure applies a consistent 20% cut in regulatory duty across the listed CBU smartphone price slabs, with the biggest absolute saving coming on devices priced above $500.
CKD and SKD Phones Also Get Duty Relief
The government has also reduced duties on smartphones and cellular phones imported in CKD/SKD condition.
| Duty Type | Previous Rate | New Rate |
|---|---|---|
| Regulatory Duty | 5% | 4% |
| Additional Customs Duty | 6% | 4% |
The reductions are intended to lower the cost burden on imported components and support local mobile-phone assembly and manufacturing.
The Ministry of Commerce said the changes were introduced under the FY2026-27 Budget and form part of tariff rationalization measures under the National Tariff Policy 2025-30.
The duty cuts come after a sharp increase in Pakistan’s mobile-phone imports during FY2025-26.
Total imports of smartphones and cellular phones rose from $1.497 billion to $1.888 billion, while imports of completely built-up smartphones more than doubled to $357.7 million.
The increase highlights strong demand for imported handsets even as the government continues to promote domestic assembly and manufacturing.
The Ministry of Commerce also noted that the Mobile Device Manufacturing Policy 2020-25 has expired, while a new policy has yet to receive federal government approval.
However, incentives already available to mobile manufacturers and assemblers under the previous policy remain protected under the Fifth Schedule of the Customs Act, 1969.
The latest duty reductions are expected to ease the import burden on smartphones, although the actual impact on retail prices will depend on how much of the savings importers, distributors, and retailers pass on to consumers.
Also read:
FBR Working on Proposal to Reduce Duties on Mobile Phone Imports
Mobile Phone Taxes Portal
Find the PTA Taxes on All Phones on a Single Page using our Taxes Portal.
Note: Mobile phone tax rates and calculations fall under the jurisdiction of the Federal Board of Revenue (FBR), not the Pakistan Telecommunication Authority (PTA).
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